Significant drug screening contract win

2 February 2015

ClearStar, Inc.

("ClearStar" or the "Company")

ClearStar wins largest Medical Information Services contract to date

Significant contract for drug screening services awarded by existing background check client

ClearStar, Inc. (AIM: CLST), the technology and service provider to the background check industry, is pleased to announce that it has been awarded a significant drug screening services contract, which is expected to be worth $1.3m-$1.5m annually, by a US-based Consumer Reporting Agency (the "Customer") that provides services to approximately 2,000 employers across the United States in multiple industries. This represents ClearStar's largest single contract to date for its Medical Information Services ("MIS") division.

The Company will provide its MIS automated web-based drug testing and results review service, which will be white labelled by the Customer to its end-user employers. This service will be delivered via the Company's WebCCF technology, an online drug and alcohol testing laboratory registration and electronic custody and control form, which integrates with the Company's technology platform. MIS provides an applicant with a unique access key to use online where they enter their details, which are used to locate the most convenient location where samples can be taken, and book an appointment through the online portal. A notification is then automatically sent to the sample collection site and applicant. The Company has arrangements with seven certified laboratories, including two of the largest in the US, and over 10,000 collection sites. Test results are sent to the Company's MIS team for review before being submitted to the employer.

The Customer, which has been a client of the Company for background check services for over ten years, is transferring its drug screening requirements to ClearStar from its existing supplier, a major US drug screening laboratory. The revenue generation will ramp over an initial period of approximately four months whilst the technology implementation is completed and the Customer retrains some of its end-user employers on the new system.

Robert Vale, CEO of ClearStar, commented:"We're delighted to have been awarded this contract, which is our largest Medical Information Services agreement to date. It represents the strength of our offer in terms of our technology, with its more advanced customisation and white label capabilities; our greater geographic footprint of collection sites; and our superior customer service, which the Customer has experienced during our relationship of over 10 years for the provision of background check services.

"As a result, we are confident of delivering our strategy of cross-selling MIS services to existing background check customers, as well as those currently using other suppliers, and furthering our mission to provide technology that simplifies the management of complex chain of custody needs and ensures third party oversight and compliance for all requirements. We look forward to strengthening our relationship with this Customer and continuing to rapidly expand our MIS business."

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About ClearStar

ClearStar, Inc. is a leading and trusted background check technology, strategic services, and decision-making information provider to employers and background screening companies.

A seven-time Inc. 5000 honouree and founding member of the National Association of Professional Background Screeners, ClearStar has provided innovative technology solutions to businesses in the human capital management industry from its corporate offices in Alpharetta, Georgia since 1995. For more information about ClearStar, please visit: www.clearstar.net.